![]() How to make sure that cost variance is zero or positive? If the value of cost variance is extremely negative, ten changes are needed in the project, but if the cost variance value is zero or positive then the cost management is going in the right direction. With the help of this analysis, the project managers of the projects are able to decide where the project stands and what are necessary adjustments needed in the project to keep it on track. ![]() It is a kind of system in which we aim on checking if the cost management of any project is positive, negative, or zero. The calculations are being done as part of one technique which is very common and called- earned value management (EVM). With the help of this, the project managers are able to find out if the project is spending more or less than what was decided for the budget. With the help of cost variance, we can find out how much the actual cost deviated from the budgeted cost for the project. It is also referred to as CV and it is the difference between the project costs that are estimated during the planning phase with the actual cost of the project that is going on. What is Cost Variance in Project management? ![]() So let us dig deep into cost variance definition and learn all about it. In this article, we are going to cover this topic, its definition, its uses, tools for cost variances, and what are the formulas that are being used in the projects. So with the right PMP training, you would be able to understand cost variance in a deeper way. If you are going to have a career in project management, then managing a budget is going to be your primary job. Every PM will need to do the cost variance for their PMP certification as this is a crucial job in the project. So make sure that you are not missing out on anything, you should be well versed with Cost Variance. Projects running over or under budgets are always a concern and if you are a project manager of that project, then you are answerable to various stakeholders of that project. What is cost variance and how to calculate it?
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